In my previous post, I looked at the development of modern macroeconomics. Several commenters responded by discussing what they thought was wrong with macro. Here I'll put in my own two cents, and then explain how my views relate to those of my commenters. In my view, the biggest problem with modern macro is the treatment of monetary policy.  Simply put, modern macroeconomists don't know what monetary policy is.   Of course I'm slightly exaggerating.  Economists have a general idea as...